Best way to play water

Analysis: Best way to play water is through equities and dedicated indexes and ETFs
Water is scarce, demand is going up (due to population increases, agricultural increases, etc.) and you want to get into the water market. What’s the play?

From HardAssetsInvestor.com: Since backing that tanker up to your tap is out, you'll need to look elsewhere; holding physical water is prohibitively expensive, and while there has been talk of starting a water futures market, one cryptic line on a website does not a market make; it’s not clear how such a futures market would work. One could imagine that water rights would be negotiated and sold on an exchange in the future, but we’re not there yet.

Right now, the best way to play the market is through equities, and fortunately, there are a number of indexes and ETFs that provide exposure to companies involved in the space: water utility companies, pipe and pump manufacturers, filtration and treatment companies, and water management companies. These are the companies who are directly involved in taking water to where it is needed, and as the value of water grows, the demand for these products will likely grow as well.

Currently, there are three water-focused ETFs in the United States:

* Powershares Water Resources Portfolio (PHO)
* Powershares Global Water Portfolio (PIO)
* Claymore S&P Global Water ETF (CGW)

Each provides a different spin on the water industry, and a full comparison of the three funds is available here . All three have turned in solid performance, as this index comparing one popular water index against the S&P 500 and Dow Jones Utility Index suggests.